Wall Street rises as Trump tweets on China deal

90 views

NEW YORK — Wall Street rallied shortly after the open on Thursday as President Donald Trump said Washington and Beijing were close to a "BIG DEAL" on trade.

The tweet instantly lifted the mood among investors, who had been holding their breaths, awaiting a decision from the White House on whether to proceed with a new round of tariffs on Chinese goods.

Investors were also digesting commentary from the European Central Bank, which on Thursday tweaked its eurozone growth forecasts and said a slowdown could be stabilizing.

British voters meanwhile were headed to the polls in a general election that could help determine the outcome of Brexit.

About 15 minutes into the day's trading, the benchmark Dow Jones Industrial Average was up 0.6 percent at 28,066.37.

The broader S&P 500 and tech-heavy Nasdaq had gained both 0.4 percent at 3,152.71 and 8,691.84 respectively.

"Getting VERY close to a BIG DEAL with China. They want it, and so do we!" Trump tweeted five minutes after the start of trading.

Tariffs on $160 billion in Chinese goods are due to kick in on Sunday and should Trump allow this, it would signal an escalation in the 20-month trade war.

Among individual companies, shares in engineering giant General Electric and coffee chain Starbucks were both up following analyst upgrades.

Delta jumped three percent after the company offered positive guidance for 2020.

Tech companies Adobe, Broadcom and Oracle are due to report earnings after the close. — AFP


90 views